Executive Vice President Interviews

Common Q&As

1. 1.After working with Nidec for one year as a part-time advisor, I officially joined the company in 2019. At that time, the Nidec Center for Production Technology R&D (currently the Nidec Keihanna Technology Center) had just been formed, and I had to establish the Center’s functions and roles that span the entire Nidec Group. From then until now, I can say that I have spent four years pursuing the question “What is a corporate research institute?” This spring, we reorganized our R&D departments, creating a system in which the R&D departments serve as a hub for developing various technologies and solving problems for all Nidec Group companies.
2. 2.I believe that we need to have unique and advanced technological capabilities and continually evolve them. Up until now, Nidec has achieved growth by supplying motors and parts with a high level of responsiveness to customer requests, but in the future, we will additionally need the ability to create modules, systems, and solutions in a wide range of fields centered on motors.
3. 3.We need the ability to combine, sophisticate, and integrate the technologies cultivated through the development and production of motors. In order to continue to grow and coexist with society over the next 50 years, we must continue to be a company that can respond flexibly to social changes and contribute to society through technology.
4. 4.It is important first to understand both the contribution and burden to the global environment that are created by our activities to manufacture motors and other products, and then consider what we can do. The manufacturing process places a burden on the environment due to the use of materials and electricity, but on the other hand, motors with an energy-saving design can significantly reduce the amount of electricity consumed around the world. In addition, the amount of electricity used to cool IT equipment will continue to grow. Nevertheless, further improvements to our fan motors, heat pipes, and water cooling technology will greatly contribute to power savings in this field.

Individual Q&As

• Q.What is the philosophy of the three research and development departments newly established in April 2023 (Nidec Product Technology R&D Center, Nidec Center for Production Technology R&D, and Nidec System Manufacturing Engineering Center)?
• A.It is to realize One NIDEC of technology. Up until now, each research institute had developed products and researched production technologies individually. Now, we have clarified the functions and roles of each research institute and established a function to connect them so that everything from product design to production technology can be integrated to enable consistent, efficient development. The research institutes will also play the role of a hub that promotes sharing and collaboration of technologies owned by the Nidec Group.
• Q.What technologies are you currently focusing your research on?
• A.We are focusing on establishing the basis for and developing the systems and solutions that combine multiple technologies, as well as the software technology that supports them. For example, in the future, EVs are expected to be referred to as “driving smartphones.” This means that we need to utilize both hardware and software to create added value. From this perspective, we are focusing on the development of our E-Axle, with a view to creating a connected car^* with functions that go one step further than the basic vehicle functions of running, stopping, and turning.

* A car equipped with a function to constantly connect to the Internet

Common Q&As

1. 1.I joined Nidec in January 2022 and immediately took charge of the automotive business in Europe. I strived to strengthen our foundation and conduct structural reforms in preparation for the development of our automotive business, centered on Stuttgart, Germany, which is famous as the city of cars. It was a year in which we made steady progress in resolving issues necessary for future business development and clearing up the past.
2. 2.I believe that we should go beyond the framework of a motor company and become a platformer. Just as major mobile phone carriers have now lost their positions to IT companies, I am confident that companies that can provide not only hardware but also the entire platform, including software, will win the top spot in the automotive industry.
3. 3.We need to increase synergies between group companies and cultivate software technology. For this purpose, it is necessary to improve the product development and design environment. We have the environment in place to improve the perfection of our hardware. However, when it comes to software, it’s a different story; we still lack development and design systems, human resources with knowledge, work style options to secure human resources, and collaboration within the group. By making full use of the technology and know-how that we have accumulated in-house through our business, I am sure that we will be able to resolve these issues.
4. 4.In order to survive the next 50 years, or even 100 years, Nidec must become a company that puts globalization and diversity at the forefront. The Nidec Group’s operations span a truly diverse range of countries and regions, and even among its Japanese peers, there are few examples of this level. We should be able to appeal more to the world the true diversity fostered within the Nidec Group, which is a strength created by people from all over the world working together, transcending all attributes such as race, nationality, gender, skills, and expertise.

Individual Q&As

• Q.Are there any situations in which your experience from your previous job was put to good use?
• A.Before joining Nidec, I was involved in the mobile phone business for a long time. I have experience in domestic sales, overseas marketing, accounting, business strategy and planning, and as a factory president, but I have never been involved in the automotive business. In that sense, I am tackling every task here for the first time. Nevertheless, I naturally utilize all of my previous work experience in the Nidec Group, where the on-site actual-item principle is always required. I can say that I am summarizing all the work I have experienced in my previous job when dealing with customers.
• Q.What are the strengths of the Nidec Group that you found while visiting various production, development, and sales sites?
• A.The Nidec Group’s greatest strength is its integrated production and sales system. For example, when it comes to sales, we explain our company’s advantages, starting with how to make parts. We are able to not only talk about product specification, but also go into the manufacturing process together with our customers. I believe this is proof that the Nidec Group has continued for 50 years to refine its manufacturing spirit, which is represented by 3Q6S principles, and that this spirit has been passed on to all employees, regardless of their duties.

Common Q&As

1. 1.In my previous job at a bank, I was in charge of corporate sales and company-wide performance management. I joined Nidec in 2012 and was assigned to work in the Affiliates Management Department (at that time) due to my experience at the previous job. I have mainly been in charge of domestic group companies. In particular, I have traveled with Chairman Nagamori to companies that have newly joined the group through M&A and have served as a liaison between Nidec and its group companies. In addition, in June this year, I was also appointed as Executive General Manager of the Small Platform Motor & Solutions Business Unit.
2. 2.As I am in charge of the Small Platform Motor & Solutions Business Unit, which is the company’s founding business, I aim to build a corporate group that endeavors based on Nidec’s identity represented by the slogan “Do it now; do it without hesitation; do it until completed,” as well as the strengths and technologies of each group company that has newly joined the group. Rather than completely absorbing these new companies, we are strengthening collaboration among group companies to help them leverage their own characteristics and ensure that the same intentions are shared among the group.
3. 3.We must maintain good communication between group companies. To this end, we need to remove all barriers to facilitate the movement of people, goods, technology, and information. In other words, this is to achieve One NIDEC. For this purpose, I believe that it is important for all employees of the Nidec Group to fully understand the concept of 3Q6S, which is regarded as our company’s constitution, act accordingly, and communicate closely.
4. 4.Nidec can contribute to reducing power consumption around the world by increasing the efficiency of motors and pursuing the development of environmentally friendly products. For example, in recent years, the power consumption and heat generation of electronic components have increased dramatically due to faster and larger data transmission. In this regard, Nidec can contribute to reducing the power consumption of ICT^* equipment by providing a solution that efficiently cools high-performance semiconductors through cooperation with Nidec CCI, which joined the group in 2018. In addition, we have quickly started working on the development of water cooling modules as a new thermal solution. This enables cooling with less than half the electricity and CO₂ emissions compared to conventional heat exhaust systems.

*ICT: Information and communication technology. It refers to technology that exchanges digitized information through communication and technology that uses communication technology to connect people to people and people to the Internet.

Individual Q&As

• Q.You were involved in setting up overseas factories for group companies. Are there any memorable episodes?
• A.When we built factories in overseas countries such as Vietnam and China, I was involved in the negotiations with all my heart and soul. As a result of repeated negotiations with local government officials, I believe that we were able to go beyond just building a new factory. We have successfully managed to strengthen the relationship of trust between Nidec and the governments of each country.
• Q.What are the technologies and products that will become the pillars of Nidec’s business in the field of small motors in the future?
• A.As mentioned earlier, I believe that thermal solutions will become a major pillar. From now on, dealing with the huge amount of heat dissipated due to the higher functionality of data centers and the expansion of the market will become an urgent issue. Conventional solutions centered on air cooling are no longer sufficient, and solutions centered on water cooling are expected to expand significantly in the future. In response to the HPC server market, which continues to grow as the use of AI expands, and the demand that increases due to the increasing output of microprocessors, we will expand our business with a sense of speed unique to Nidec, with products that use water cooling technology that we have already been developing. In addition, we will utilize the technology cultivated in the Small Platform Motor & Solutions Business Unit to address the issue of electrification, which is sweeping across fields, not only of automobiles but also of motorcycles.

Common Q&As

1. 1.I joined Nidec in 2009. Immediately after that, I was appointed as First Senior Vice President of Nidec-Shimpo Corporation (currently Nidec Drive Technology Corporation), with which I had a connection through my previous job.
2. 2.I want Nidec to be a company that realizes sustainable growth and talks about dreams and turns them into reality.
3. 3.I believe that we need to promote business selection and concentration to realize sustainable growth. I think that we are now at a point where we need to take a bird’s-eye view of the group’s businesses, analyze them, and reorganize some areas depending on the situation. Furthermore, in order to achieve sustainable growth, it is necessary to diversify our business portfolio to some extent. This may seem to contradict the concept of selection and concentration of business. However, it is risky to concentrate management resources on a limited number of companies or industries. I think that large-scale investments targeting specific companies or industries must be examined carefully. In order to make Nidec a company that talks about dreams and turns them into reality, we must develop employees who faithfully adhere to and carry out Chairman Nagamori’s basic philosophy of “Do it now; do it without hesitation; do it until completed” to follow his path.
4. 4.Regarding future sustainability management and social contribution, I think it would be a good idea to emphasize the significant contribution that the Nidec Group has already made through its projects. For example, Nidec Minster Corporation handles aluminum cans with a high recycling rate in its canning press business.

Individual Q&As

• Q.Please tell us the points to focus on when conducting M&A.
• A.We assess the current situation of our existing core businesses, identify areas that are lacking, and look for business entities that can supplement them. In 2011, Nidec-Shimpo Corporation (currently Nidec Drive Technology Corporation) merged with Nippon Densan Kyori Co., Ltd. and entered the press business. At that time, we made M&A strategy one of our major measures for growth. Having acquired Nippon Densan Kyori Co., Ltd., a small press machine business based on the Japanese market, we decided that we needed a medium and large press machine business with strong markets in Western countries. Accordingly, we acquired the current Nidec Minster Corporation and Nidec Arisa S.L.U. Subsequently, we acquired peripheral equipment manufacturers that could create a high synergy effect through cooperation with the above stated companies.
  　When considering an acquisition, it is important to meet with the management of the target company many times and assess the potential partner. As we get to know the personalities of the other party, we try to make them trust us, thinking that they can work with us.
• Q.Next, please tell us the key points regarding PMI (Post Merger Integration).
• A.In many M&A transactions around the world, the acquirer’s promotion manager is not involved in the PMI process. However, in the Nidec Group, not only the person in charge of promoting the acquisition project but also the company’s top person, Nagamori, will be deeply involved in the PMI process after the acquisition. Another characteristic of the Nidec Group’s M&A strategy is that it does not involve major changes in the management team of the acquired company or mass layoffs of its employees. We give management authority to the existing management team of the acquired company. At the same time, we share the basic management philosophy of the Nidec Group with all members of the company, provide investment support as necessary, and raise its profitability while increasing its employee morale.

Common Q&As

1. 1.In 2004, I joined Nidec-Read Corporation (currently Nidec Advance Technology Corporation), one of our group companies, and was subsequently transferred to South Korea to help set up a base. I returned to Japan as an executive in 2017 and served as the company’s representative director and president for four years starting in April 2018. Although this industry was characterized by sales instability due to the strong influence of the demand cycle in the semiconductor market, we have worked to build a foundation that would allow us to continue to generate high levels of profits. Since May 2022, I have been in my current position.
2. 2.I want Nidec to continue to grow more and have a strong presence over the next 50 years. While inheriting the corporate culture and spirit of our founder that have served as the foundation for our growth, we must continue to make changes in line with the times by pursuing cutting-edge technology and following social demands in order to survive in the new era. I believe that such efforts to break with conventions will pave the way for growth.
3. 3.I believe that it will become even more necessary to look at things from the perspective of the entire group, positioning overall optimization as a prerequisite. For example, it is essential to further promote the sharing of technology and purchase-related information, the mobility of human resources, and the effective mutual use of assets. By accelerating the One NIDEC movement that removes barriers between group companies, we will increase the value of the entire group.
4. 4.We are a company, so our management purpose is to increase our business performance and stock price, which is also a mission as an executive. We believe that this purpose and mission and sustainability and ESG management are not contradictory, but that they mutually influence each other and create synergistic effects. For example, automotive motors (E-Axle) greatly contribute to decarbonization, and decarbonization leads to improving the Nidec Group’s corporate value, creating new markets, and ultimately generating profits. The same applies to human rights issues, diversity promotion, and building a competitive supply chain, which the Nidec Group is actively working on. As a globally operating company, Nidec aims to make business decisions from the perspective of sustainability and ESG management and eventually benefit all stakeholders.

Individual Q&As

• Q.What were the key points in stabilizing the performance of Nidec-Read Corporation (currently Nidec Advance Technology Corporation)?
• A.As mentioned earlier, the company’s main product, inspection equipment for substrates and semiconductors, has been experiencing large fluctuations in demand. In order to compensate for the gap in demand, we focused on the consumables business, such as inspection jigs and probe cards, and gradually built up our product portfolio by leveraging M&A to generate constant demand.
• Q.You are currently the representative director and president of Nidec Instruments. What is the focus in strengthening the company’s business foundation?
• A.The goal is to instill management methods and attitudes based on the Nidec Policy and Nagamori-ism and to put them into practice. We aim to continue to achieve our business plans by aligning our employees with the above stated philosophies. This will strengthen our business foundation and lead to future growth. Achieving the plan requires not only will power but also detailed implementation of policies. Nevertheless, I instruct my team members to always maintain “Backbone and Tenacity,” a truly critical notion cherished at Nidec.